Planning and being ready for retirement when it comes to money issues is at an all time low. It is not only the younger generation that feels they have plenty of time, it is mostly the 50 and over age group that suffers unknowingly from the biggest retirement planning mistakes which in turn leads to years of your retirement years in desperation, going without, not being able to handle health cost, or emergencies, and most of all trying to figure it all out.
Yes it is true that we learn from our mistakes, but there are some areas that we should make every attempt to understand, including but not limited to: retirement money, saving for retirement, health costs, the best places to live, how to prepare for the loss of income from quitting or retiring from your job, and most of all the mistakes made when it comes to dealing with hundreds of details involving social security.
Five of the biggest mistakes that occur when planning (or not planning) for retirement include:
1. Not saving enough – surveys have shown that not saving or having enough money is the largest mistake in retirement planning. If you are presently working, keep your job as long as possible to have more retirement money especially through your pension, IRA or retirement fund (if you are lucky to have that). Saving at least 10% of your pay only for retirement works great for the younger generation (if they keep up with it), but what if you are in your 50’s or 60’s and have little or no retirement money saved?
2. Medical costs – health care plans with employers/corporations are fading away fast and furious. Are you aware that the average retirement couple will have over $200,000 in health care cost. Even if Medicare is still around in the next 20 – 40 years, the out of pocket expenses for Medicare has drastically increased 50% in the past decade. Couples and individuals of all ages do not plan for this expense.
3. Retiring early. – people are so eager to stop working and retire early yet fail to realize that working for a few extra years can push social security benefits back giving you about 8% more of a increase for every year you wait. Delaying retirement can boost your retirement income by a third or more which (hopefully) helps you to save more and avoids tapping into any savings you might have.
4. Figuring out the tax impact – should you take a early retirement? How long should you work? How does your tax status change going into retirement and after you retire? Hopefully you have a good tax person to give you correct answers.
5. Not factoring in longevity – people are living longer, and at the same time are not figuring out the proper percentage of monthly income to take and are outliving their money supply.
According to a USA Today article about debt, 78% of people over the age of 60 have mortgage debt, 59% have credit card debt, and 56% have car payments. Another survey shows that 51% of workers over the age of 55 have less than $50,000 saved for retirement.
The numbers for Gen X and Millennial‘s, dealing with student debt, not finding employment to fit their needs, and not having any type of retirement plan are extremely high. These numbers are alarmingly scary when it comes to wondering what one’s future will be like. So I have to ask, are you in these numbers? Do you have your future money situation all set up? Are you prepared for emergencies and downfalls? Do you know how or where to find the answers to your questions?
Finding the right answers to all of your questions could be over whelming. Not knowing where to start or how to fix, adjust, build or simply who to trust could be holding you back.
Mistakes in retirement planning could be disastrous, not planning for retirement (for all ages) is a double dose of disaster.
Best selling author Dave Ramsey aims high when it comes to helping out individuals to achieve success over money issues. In Dave’s book The Total Money Makeover, he details that to correctly understand, plan, and build, for all ages is a necessity to overcome the biggest retirement planning mistakes, that includes the inevitable, debt, retirement money and everyday life issues over money.
Dave’s book is for all ages and for all incomes, it doesn’t matter if you are broke or need advise on how not to lose your retirement, Ramsey gives his readers a simple, bold yet no nonsense plan in regards to their personal money matters, When you read this book you will get clear positive results and learn to change your life and your streams of income.
The advise from Dave Ramsey is invaluable, it is a good place to start and an excellent place to find answers to fix your money planning mistakes.
Topics covered include:
- a sure-fire plan for paying off all debt.
- understanding and avoid the 10 most dangerous money myths.
- secure a nest egg for emergencies
- build a big, fat retirement fund
The majority of society will fall into the biggest retirement planning mistakes and what is sad is not knowing that help was within their reach. Learn to plan your life out, avoiding mistakes is possible with The Total Money Makeover. Get started, get back to basics, you can get on the right track…read.